A new report from the California Department of Insurance is drawing questions about the forms of emergency transportation that ought to be covered by health insurance carriers.
According to the report, roughly 400,000 people are airlifted by helicopters to US hospitals every year, saving lives. However, the high-cost procedure is not covered by the majority of health insurance policies and the bill can leave patients tens of thousands of dollars in debt.
The result is several complaints to state insurance regulators over “unpayable” bills.
And the concern is not just in California. Maryland Insurance Commissioner Al Redmer told San Diego’s 10News that he has also received many complaints over air ambulance bills over the years, and that for-profit ambulances often charge an unrestricted fee.
Air ambulance companies technically fall under federal laws that deregulate fares for the airline industry, Redmer explained, meaning they can bill patients “for almost any amount they want.”
“They’re collecting the reimbursement that the insurance carrier will provide them, and then they are balance-billing their patients,” he said.
The air ambulance industry has dismissed accusations of price gouging, however, stressing that responders are on all call at all hours of the day, every day of the year.
Paul Webster, vice president of Air Methods – a California company – also said that they work with patients to figure out ways to pay the bill, including working with their insurance companies.
“We will discount sometimes up to 100% the balance of their bill,” Webster said.
He also stressed that the majority of Air Methods’ customers are covered by Medicaid or Medicare, though some are uninsured.
And, on about 70% of their transports, Air Methods receives only about $4,000 in reimbursement from insurers for transport that costs around $10,500. In cases like that, they’re losing money.
“We have a bill in Congress right now trying to pass Medicare legislation to address this issue,” he said.
